Apollo Funds Acquire Freedom CNG, a Leading Provider of Renewable Natural Gas Fueling Infrastructure
Apollo-managed funds have acquired a majority stake in Freedom CNG, a leading provider of compressed natural gas (CNG) and renewable natural gas (RNG) fueling infrastructure in Texas. Freedom operates a network of high-capacity fueling stations in the Houston Metro area, serving various customers including logistics companies, municipalities, and school districts.
The acquisition aims to expand Freedom's platform through organic and inorganic growth initiatives. Apollo sees significant investment potential in this market due to existing tailwinds. The partnership is expected to help Freedom meet the growing demand for economically attractive and environmentally sensitive low-carbon alternative fuels.
This move aligns with Apollo's broader strategy of supporting the energy transition, with approximately $40 billion deployed into energy transition and sustainability-related investments over the past five years.
I fondi gestiti da Apollo hanno acquisito una partecipazione di maggioranza in Freedom CNG, un fornitore leader di infrastrutture per il rifornimento di gas naturale compresso (CNG) e gas naturale rinnovabile (RNG) in Texas. Freedom gestisce una rete di stazioni di rifornimento ad alta capacità nell'area metropolitana di Houston, servendo vari clienti tra cui aziende logistiche, municipalità e distretti scolastici.
L'acquisizione ha l'obiettivo di espandere la piattaforma di Freedom attraverso iniziative di crescita organica e inorganica. Apollo vede un significativo potenziale di investimento in questo mercato grazie ai venti favorevoli esistenti. La partnership dovrebbe aiutare Freedom a soddisfare la crescente domanda di combustibili alternativi a basse emissioni di carbonio, economicamente vantaggiosi e sensibili dal punto di vista ambientale.
Questa mossa si allinea con la strategia più ampia di Apollo di supportare la transizione energetica, con circa 40 miliardi di dollari investiti nella transizione energetica e negli investimenti legati alla sostenibilità negli ultimi cinque anni.
Los fondos administrados por Apollo han adquirido una participación mayoritaria en Freedom CNG, un proveedor líder de infraestructura de combustible de gas natural comprimido (CNG) y gas natural renovable (RNG) en Texas. Freedom opera una red de estaciones de servicio de alta capacidad en el área metropolitana de Houston, atendiendo a varios clientes, incluidas empresas de logística, municipios y distritos escolares.
La adquisición tiene como objetivo expandir la plataforma de Freedom a través de iniciativas de crecimiento orgánico e inorgánico. Apollo ve un gran potencial de inversión en este mercado debido a los vientos favorables existentes. Se espera que la asociación ayude a Freedom a satisfacer la creciente demanda de combustibles alternativos de bajo carbono, económicamente atractivos y ambientalmente sensibles.
Este movimiento se alinea con la estrategia más amplia de Apollo de apoyar la transición energética, con aproximadamente 40 mil millones de dólares desplegados en inversiones relacionadas con la transición energética y la sostenibilidad en los últimos cinco años.
아폴로가 관리하는 펀드가 텍사스에서 압축 천연가스(CNG)와 재생 가능 천연가스(RNG) 연료 인프라의 주요 공급업체인 Freedom CNG의 지분을 대량 인수했습니다. Freedom은 휴스턴 메트로 지역에서 다양한 고객, 물류 회사, 지방 자치 단체 및 교육구를 포함하여 고용량 연료 주유소 네트워크를 운영하고 있습니다.
이번 인수의 목표는 Freedom의 플랫폼을 확장하는 것입니다 유기적 및 비유기적 성장 이니셔티브를 통해 아폴로는 이 시장에서 기존의 긍정적인 호재로 인해 상당한 투자 잠재력을 보고 있습니다. 이 파트너십은 Freedom이 경제적으로 매력적이고 환경적으로 민감한 저탄소 대체 연료에 대한 증가하는 수요를 충족하는 데 도움을 줄 것으로 예상됩니다.
이 움직임은 지난 5년간 에너지 전환 및 지속 가능성과 관련된 투자에 약 400억 달러가 투입된 아폴로의 보다 광범위한 에너지 전환 지원 전략과 일치합니다.
Les fonds gérés par Apollo ont acquis une participation majoritaire dans Freedom CNG, un fournisseur de premier plan d'infrastructures de carburant à base de gaz naturel comprimé (CNG) et de gaz naturel renouvelable (RNG) au Texas. Freedom exploite un réseau de stations de ravitaillement à haute capacité dans la région métropolitaine de Houston, desservant divers clients, y compris des entreprises de logistique, des municipalités et des districts scolaires.
L'acquisition vise à développer la plateforme de Freedom grâce à des initiatives de croissance organique et inorganique. Apollo voit un potentiel d'investissement considérable sur ce marché en raison des vents favorables existants. Le partenariat devrait aider Freedom à répondre à la demande croissante de carburants alternatifs à faibles émissions de carbone, économiquement attractifs et sensibles à l'environnement.
Ce mouvement s'inscrit dans la stratégie plus large d'Apollo de soutenir la transition énergétique, avec environ 40 milliards de dollars investis dans la transition énergétique et des investissements liés à la durabilité au cours des cinq dernières années.
Die von Apollo verwalteten Fonds haben eine Mehrheitsbeteiligung an Freedom CNG erworben, einem führenden Anbieter von Infrastruktur für komprimiertes Erdgas (CNG) und erneuerbares Erdgas (RNG) in Texas. Freedom betreibt ein Netzwerk von Hochleistungs-Tankstellen im Großraum Houston und bedient verschiedene Kunden, darunter Logistikunternehmen, Kommunen und Schulbezirke.
Die Akquisition zielt darauf ab, die Plattform von Freedom auszubauen durch organisches und anorganisches Wachstum. Apollo sieht signifikantes Investitionspotenzial in diesem Markt aufgrund der bestehenden Rückenwinde. Die Partnerschaft wird voraussichtlich Freedom dabei helfen, der wachsenden Nachfrage nach wirtschaftlich attraktiven und umweltfreundlichen kohlenstoffarmen Alternativkraftstoffen gerecht zu werden.
Dieser Schritt steht im Einklang mit der umfassenderen Strategie von Apollo, die Energiewende zu unterstützen, mit rund 40 Milliarden Dollar, die in den letzten fünf Jahren in Investitionen zur Energiewende und Nachhaltigkeit umgesetzt wurden.
- Acquisition of a majority stake in Freedom CNG, a growing RNG fueling infrastructure provider
- Potential for significant growth and expansion of Freedom's platform
- Alignment with Apollo's energy transition strategy
- Access to Apollo's resources and expertise in the natural gas value chain
- Strong demand potential for RNG in the transportation sector
- None.
Insights
Apollo's acquisition of Freedom CNG represents a strategic move into the growing renewable natural gas (RNG) sector. This deal aligns with Apollo's broader $40 billion investment in energy transition over the past five years. The RNG market shows promise due to increasing demand in transportation and bipartisan regulatory support. For Apollo (NYSE: APO), this acquisition could potentially boost its portfolio performance in the sustainable energy sector. However, investors should note that the financial terms of the deal were not disclosed, making it challenging to assess the immediate impact on Apollo's financials. The long-term success will depend on Freedom's ability to expand its infrastructure and capitalize on the growing RNG demand.
This acquisition signifies a notable shift towards cleaner energy solutions in the transportation sector. RNG, derived from landfills and other sources, offers a significant emissions reduction compared to traditional fuels. With transportation accounting for over 25% of U.S. energy consumption, the expansion of RNG infrastructure could play a important role in meeting decarbonization objectives. The involvement of a major player like Apollo could accelerate the adoption of RNG, potentially leading to faster progress in reducing transportation-related emissions. However, it's important to note that while RNG is cleaner than traditional natural gas, it's still a fossil fuel derivative and may be seen as a transitional rather than long-term solution in the broader context of climate change mitigation efforts.
The acquisition of Freedom CNG by Apollo Funds taps into a growing market for alternative fuels. The RNG sector is poised for expansion, driven by increasing adoption in transportation markets and strong regulatory support. Freedom's strategic positioning in high-traffic areas of Houston provides a solid foundation for growth. The partnership with Apollo could accelerate Freedom's expansion plans, both organically and through acquisitions. This move could potentially disrupt the traditional fuel market, especially in regions with high transportation volume. However, the success of this venture will depend on factors such as the pace of RNG infrastructure development, the rate of adoption by fleet operators and potential competition from other alternative fuel sources like electric vehicles. Investors should monitor these factors closely to gauge the long-term potential of this investment.
HOUSTON and NEW YORK, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds (the “Apollo Funds”) have acquired a majority interest in Freedom CNG (“Freedom”), an owner and operator of compressed natural gas (CNG) and renewable natural gas (RNG) fueling infrastructure in Texas.
Founded in 2012, Freedom operates a fast-growing network of high capacity fueling stations in strategic, highly trafficked locations in the Houston Metro area, providing RNG to customers including leading logistics and transportation companies, refuse companies, municipalities, school districts and other high-volume fuel users in support of their decarbonization objectives.
Apollo Partner Scott Browning said, “Freedom has developed a strong portfolio of RNG fueling stations with meaningful growth potential driven by established relationships with blue-chip customers and attractive new development opportunities. We look forward to working with Bill, Ronny and the rest of the Freedom team to continue expanding Freedom’s platform through organic and inorganic growth initiatives in a market where we see the need for significant investment given the tailwinds that exist. Apollo has deep expertise investing in the natural gas value chain as part of our broader strategy to serve as a key capital provider supporting the energy transition.”
Freedom Managing Partners Bill Winters and Ronny Cuenod said, “We are pleased to partner with the Apollo Funds, who bring the resources and experience necessary to help us multiply our efforts to meet the growing demand for economically attractive and environmentally sensitive low carbon alternative fuels. We are proud of the growth we have achieved in the last 12 years and now look forward to working alongside Apollo Funds to expand the business while promoting broader adoption of RNG.”
Transportation accounts for over
Over the past five years, Apollo-managed funds have deployed approximately
Raymond James & Associates, Inc. served as financial advisor and Crady Jewett McCulley & Houren L.L.P. and Baker Botts L.L.P. acted as legal counsel to Freedom. Vinson & Elkins LLP acted as legal counsel to the Apollo Funds.
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately
About Freedom
Founded in 2012, Freedom CNG strives to offset the price of diesel and provide a better alternative fuel for the environment. Freedom CNG’s mission is to provide clean and affordable compressed natural gas (CNG) to commercial fleets, municipalities, school districts and other high-volume users of fuel through multiple fueling sites in Houston and throughout Texas, thereby empowering our customers to lower their fueling costs, reduce emissions and improve the air quality of Texas.
Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com
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i As of June 30, 2024. Deployment commensurate with Apollo’s proprietary Climate and Transition Investment Framework, which provides guidelines and metrics with respect to the definition of a climate or transition investment. Reflects (a) for equity investments: (i) total enterprise value at time of signed commitment for initial equity commitments; (ii) additional capital contributions from Apollo funds and co-invest vehicles for follow-on equity investments; and (iii) contractual commitments of Apollo funds and co-invest vehicles at the time of initial commitment for preferred equity investments; (b) for debt investments: (i) total facility size for Apollo originated debt, warehouse facilities, or fund financings; (ii) purchase price on the settlement date for private non-traded debt; (iii) increases in maximum exposure on a period-over-period basis for publicly-traded debt; (iv) total capital organized on the settlement date for syndicated debt; and (v) contractual commitments of Apollo funds and co-invest vehicles as of the closing date for real estate debt; (c) for SPACs, the total sponsor equity and capital organized as of the respective announcement dates; (d) for platform acquisitions, the purchase price on the signed commitment date; and (e) for platform originations, the gross origination value on the origination date.
FAQ
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